Question

Economic growth requires higher degree of government intervention as compared to economic development.

• A. True
• B. False

Answer 1

The correct option is B False

False.

Economic growth refers to the process of using natural resources for the development of the economy in other to increase the per capita income of the economy. The growth mainly measures the per capita income rather than overall income of the economy.

Economic development refers to the economic growth of the economy in all terms which includes all aspects and has become a main and central theme of economic thought throughout the years. It includes reduction in poverty, income inequality as well as unemployment.

Therefore, economic development requires a high degree of government intervention.